Banking Awareness Quiz for Bank Exams 2021- 18th April

Q1. A term loan is said to be non performing when interest and/ or installment of principal remain overdue for a period of more than _______.
(a)60 days
(b)90 days
(c)50 days
(d)120 days
(e)100 days

Q2. NPA implemented under the recommendation of which committee?
(a)Mangla committee
(b)Singla committee
(c)K P committee
(d)Narsimha committee
(e)None of these

Q3. When RBI started the implementation of NPA guidelines?
(a)1992
(b)1991
(c)1982
(d)1995
(e)1990

Q4. From the following which is the type of NPA?
(a)Unsecure NPA
(b)Sub-standard NPA
(c)Secure NPA
(d)Substantial NPA
(e)None of these L1Difficulty 2

Q5. What does M stands for in SMA with respect to Non-Performing Asset?
(a)Mention
(b)Monetary
(c)Medium
(d)Money
(e)None of these

Q6. The banking term NPA stands?
(a)Net Profitable Assets
(b)New Performance Assets
(c) Non Performing Assets
(d)Net Performing Assets
(e)None of these

Q7. Non-performing loans are also known as-
(a)Unpaid loans
(b)Bad loans
(c)Over dues
(d)Collateralised loans
(e)None of these

Q8. Expand the banking term SARFAESI Act-
(a)Securitisation and Reconstruction of Financial Assets and Equities of Security Interest Act
(b)Securitisation and Reconstruction of Financial Assurance and Enforcement of Social Interest Act
(c)Securitisation and Regeneration of Financial Assets and Enforcement of Security Interest Act
(d)Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act
(e)None of these

Q9. Expand the banking term ARC-
(a)Asset Regeneration Company
(b) Asset Reconstruction Company
(c)Asset Reconstruction Corporation
(d) Asset Recovery Corporation
(e)None of these

Q10. In which year SARFAESI Act has been passed?
(a)1995
(b)2005
(c)1996
(d)2002
(e)2006

Practice More Questions of Banking Awareness for Competitive Exams:

Solutions

S1.Ans(b)
Sol. Banks should, classify an account as NPA only if the interest due and charged during any quarter is not serviced fully within 90 days from the end of the quarter.

S2.Ans(d)
Sol. NPA was implemented under the recommendation of Narsimha committee. The Government of India appointed a nine member committee headed by M. Narasimham, the former Governor of RBI on August 14, 1991.

S3.Ans(a)
Sol. RBI started the implementation of NPA guidelines in 1992.

S4.Ans(b)
Sol. Types of Non Performing Assets: Standard Assets, Sub-Standard Assets, Doubtful Assets, Loss Assets.

S5.Ans(a)
Sol. SMA- Special Mention Accounts, Banks will categories accounts as SMA when the money remains outstanding for 30-90 days after due payment date.

S6.Ans(c)
Sol. A non performing asset (NPA) is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days.

S7.Ans(b)
Sol. Non-performing loans are also known as “bad debt”.

S8.Ans(d)
Sol. The banking term SARFAESI Act- Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act.

S9.Ans(b)
Sol. An Asset Reconstruction Company is a specialized financial institution that buys the NPAs or bad assets from banks and financial institutions so that the banks and financial institutions can clean up their balance sheets.

S10.Ans(d)
Sol. SARFAESI Act has been passed in 2002.

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